Paychex reports boost in profit in Q4

The Penfield payroll company reported net income of $145.9 million, or 40 cents a share, up from $123.5 million, or 34 cents a share, in the same period last year. This was in line with analysts’ predictions of per-share earnings of 40 cents.

The company released results for the quarter and full year ended May 31 after markets closed on Tuesday.

For the full year, revenues improved 9 percent to $639.0 million, up from $585.3 million last year.

“We are pleased with our strong finish to fiscal 2014,” said Martin Mucci, president and CEO, in a statement. “Payroll service revenue continued to advance for the fiscal year, driven by higher revenue per check, client base and checks per payroll.”

Mucci noted human resource services revenue continued to grow at a double-digit rate, driven largely by demand for human resource outsourcing solutions. “We again finished the year with client retention at record levels,” he said.

In June, Paychex bought NetTime Solutions LLC of Scottsdale, Ariz., a company founded in 2008. NetTime had 2012 revenue of $4.7 million and a three-year growth rate of 52 percent, with four years in a row on the Inc. 5000, ranking No. 4,456 in 2013.

Terms of the deal were not disclosed.

Paychex will host a conference call at 10:30 a.m. Wednesday to review results for the quarter. Mucci will participate in the call with Efrain Rivera, the company’s senior vice president, chief financial officer and treasurer.

Paychex shares (PAYX) closed Tuesday at $42.13, up slightly from Monday’s close of $41.56.